❓ Mr. Johnston questions the Premier about potential re-amalgamation of electricity utilities, specifically Verve Energy, Synergy, Western Power, and Horizon Power, given previous opposition and a prior report. The Premier clarifies his comments, focusing on Verve and Synergy, citing cost inefficiencies from disaggregation.
AnsweredQoN 57Legislative Assembly
QuestionView source ↗
ELECTRICITY UTILITIES — OATES REPORT
57. Mr W.J. JOHNSTON to the Premier:
I refer to the Premier's
comments yesterday in the house that we have four electricity utilities when we
should have two, and the announcement by Minister Peter Collier on 26 August
2009 that having considered the $250 000 Oates report into the electricity
system, this government accepted the report's recommendation to reject
the re-amalgamation of Verve Energy, Synergy, Western Power and Horizon Power.
(1) Which of the four entities will
be amalgamated to form the two entities, and when?
(2) Has there
been any review that has recommended this decision, and when did this review go
to cabinet?
(3) Given that
re-amalgamation is opposed by the Chamber of Commerce and Industry of Western
Australia, the Chamber of Minerals and Energy, the Energy Retailers Association
of Australia Ltd, the Energy Supply Association of Australia Ltd, the Economic
Regulation Authority, every investor in the sector, every generator in Western
Australia—including Verve Energy—and Hon Peter Collier, why has
this decision been made?
57. Mr W.J. JOHNSTON to the Premier:
I refer to the Premier's
comments yesterday in the house that we have four electricity utilities when we
should have two, and the announcement by Minister Peter Collier on 26 August
2009 that having considered the $250 000 Oates report into the electricity
system, this government accepted the report's recommendation to reject
the re-amalgamation of Verve Energy, Synergy, Western Power and Horizon Power.
(1) Which of the four entities will
be amalgamated to form the two entities, and when?
(2) Has there
been any review that has recommended this decision, and when did this review go
to cabinet?
(3) Given that
re-amalgamation is opposed by the Chamber of Commerce and Industry of Western
Australia, the Chamber of Minerals and Energy, the Energy Retailers Association
of Australia Ltd, the Energy Supply Association of Australia Ltd, the Economic
Regulation Authority, every investor in the sector, every generator in Western
Australia—including Verve Energy—and Hon Peter Collier, why has
this decision been made?
AnswerView source ↗
(1)–(3)
I was asked a question yesterday, I think by the Leader of the Opposition, and
this issue came up. There are four utilities, following the disaggregation that
the Labor government put in place. When I made reference to two utilities, I
was, at least in my mind, thinking of Perth and the south west integrated grid.
I recognise that when I said four from two, that could be misconstrued; that is
why I think the Leader of the Opposition got up and asked me a supplementary
question, and I made it clear that —
Several members interjected.
Mr C.J. BARNETT : —
Horizon would stay. I made it clear that I was not referring to Horizon. I have
said —
Mr M. McGowan interjected.
Mr
C.J. BARNETT : You asked me a supplementary and I clarified it; I answered
it yesterday.
Mr
M. McGowan : No, you did not.
Mr
C.J. BARNETT : I said four to two; I realise that four to two could be
misconstrued. The Leader of the Opposition jumped up and asked me a supplementary,
and I said, ''No, Horizon would stay; I am talking about the south west
grid.'' The Leader of the Opposition rushed out the door and the member
for Cannington rushed out the door to try to confuse the media, which is not a
difficult task in this town!
Several members interjected.
Mr
C.J. BARNETT : And they are all running around now saying Horizon is going
to disappear! Yes, gaze up there and wonder! Can I make it very clear that when
I talk about changes in the structure —
Mr
P.B. Watson: Arrogance!
Mr C.J. BARNETT :
Oh, ''arrogance'' from the member for Albany!
Mr P.B. Watson : It
suits you well!
Mrs
M.H. Roberts : Look in the mirror!
Mr
C.J. BARNETT: Oh, this is
blithering from a 13-year-old!
Mrs
M.H. Roberts : You could have said happy birthday!
Mr
C.J. BARNETT : Happy birthday!
So, when I talk about changes in the
structure I have consistently talked about Verve and Synergy, because that
split has not worked. I still await the day—it is like waiting for a
miracle cure—that electricity prices will fall because of
disaggregation; it has added costs right across the system. And, yes, all of
the various vested interests do want it to stay as it is, but there is one
vested interest the member forgot to mention—namely, the electricity
consumers of Western Australia, who are paying dearly for the disaggregation
that has taken place. So, yes, the government is looking at Verve and Synergy.
We have made no decision, there is no report, and there has been no discussion
at cabinet level, but I have been absolutely clear that I have always
considered that to be a mistake, before the Labor government made those
changes, and I am not —
Mr M. McGowan :
Which you voted for.
Mr C.J. BARNETT : I
voted for because I do not —
Mr M. McGowan : You
voted for them!
Mr C.J. BARNETT :
Yes, because I am not going to sit up on the back bench, as I was as a former
leader, and create problems for the leader of the day—that is not what
I do. That is what the Leader of the Opposition did to his former leader, but I
do not do that sort of thing.
I was asked a question yesterday, I think by the Leader of the Opposition, and
this issue came up. There are four utilities, following the disaggregation that
the Labor government put in place. When I made reference to two utilities, I
was, at least in my mind, thinking of Perth and the south west integrated grid.
I recognise that when I said four from two, that could be misconstrued; that is
why I think the Leader of the Opposition got up and asked me a supplementary
question, and I made it clear that —
Several members interjected.
Mr C.J. BARNETT : —
Horizon would stay. I made it clear that I was not referring to Horizon. I have
said —
Mr M. McGowan interjected.
Mr
C.J. BARNETT : You asked me a supplementary and I clarified it; I answered
it yesterday.
Mr
M. McGowan : No, you did not.
Mr
C.J. BARNETT : I said four to two; I realise that four to two could be
misconstrued. The Leader of the Opposition jumped up and asked me a supplementary,
and I said, ''No, Horizon would stay; I am talking about the south west
grid.'' The Leader of the Opposition rushed out the door and the member
for Cannington rushed out the door to try to confuse the media, which is not a
difficult task in this town!
Several members interjected.
Mr
C.J. BARNETT : And they are all running around now saying Horizon is going
to disappear! Yes, gaze up there and wonder! Can I make it very clear that when
I talk about changes in the structure —
Mr
P.B. Watson: Arrogance!
Mr C.J. BARNETT :
Oh, ''arrogance'' from the member for Albany!
Mr P.B. Watson : It
suits you well!
Mrs
M.H. Roberts : Look in the mirror!
Mr
C.J. BARNETT: Oh, this is
blithering from a 13-year-old!
Mrs
M.H. Roberts : You could have said happy birthday!
Mr
C.J. BARNETT : Happy birthday!
So, when I talk about changes in the
structure I have consistently talked about Verve and Synergy, because that
split has not worked. I still await the day—it is like waiting for a
miracle cure—that electricity prices will fall because of
disaggregation; it has added costs right across the system. And, yes, all of
the various vested interests do want it to stay as it is, but there is one
vested interest the member forgot to mention—namely, the electricity
consumers of Western Australia, who are paying dearly for the disaggregation
that has taken place. So, yes, the government is looking at Verve and Synergy.
We have made no decision, there is no report, and there has been no discussion
at cabinet level, but I have been absolutely clear that I have always
considered that to be a mistake, before the Labor government made those
changes, and I am not —
Mr M. McGowan :
Which you voted for.
Mr C.J. BARNETT : I
voted for because I do not —
Mr M. McGowan : You
voted for them!
Mr C.J. BARNETT :
Yes, because I am not going to sit up on the back bench, as I was as a former
leader, and create problems for the leader of the day—that is not what
I do. That is what the Leader of the Opposition did to his former leader, but I
do not do that sort of thing.
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